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Difference between revisions of "Co-signing, Guarantees and Joint Debts"
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Co-signing, Guarantees and Joint Debts (view source)
Revision as of 22:26, 16 September 2018
, 22:26, 16 September 2018no edit summary
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There is little joint debtors can do to avoid a debt completely or to legally shift liability to the other debtor. The law does not care, for example, if one party’s income is higher than the other’s or if the debtors have agreed between themselves who will pay off the debt. Debtors cannot bind a creditor to a contract to which the creditor has not been a party. This is especially a problem when spouses separate and one spouse promises to pay off certain debts as part of a separation agreement. If that spouse defaults on paying the debt, the creditor can still sue both spouses. | There is little joint debtors can do to avoid a debt completely or to legally shift liability to the other debtor. The law does not care, for example, if one party’s income is higher than the other’s or if the debtors have agreed between themselves who will pay off the debt. Debtors cannot bind a creditor to a contract to which the creditor has not been a party. This is especially a problem when spouses separate and one spouse promises to pay off certain debts as part of a separation agreement. If that spouse defaults on paying the debt, the creditor can still sue both spouses. | ||
There are particular problems for joint debtors with credit cards. Usually, the credit agreement between the parties and the creditor calls for each debtor to be fully responsible for all credit obtained through the card. | There are particular problems for joint debtors with [[Credit Cards|credit cards]]. Usually, the credit agreement between the parties and the creditor calls for each debtor to be fully responsible for all credit obtained through the card. | ||
==== Guarantors==== | ==== Guarantors==== | ||